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Set Up Small Employers’ Relief in UK Payroll

  • June 17, 2026
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Kay_N
Bobber

If your organisation qualifies for Small Employers’ Relief (SER), you can reclaim more of the statutory family-related payments you make to employees through HMRC.

 

From 6 April 2026, eligible employers can reclaim 109% of qualifying statutory payments, increased from the previous rate of 108.5%.

 

Eligible employers can recover:

100% of qualifying statutory payments

An additional 9% compensation

 

This applies to:

Statutory Maternity Pay (SMP)

Statutory Paternity Pay (SPP)

Statutory Adoption Pay (SAP)

Statutory Shared Parental Pay (ShPP)

Statutory Parental Bereavement Pay (SPBP)

 

Note: Statutory Sick Pay (SSP) cannot be reclaimed.

 

You may qualify if your total Class 1 National Insurance contributions for the previous tax year were £45,000 or less. If you're unsure whether your organisation is eligible, check with HMRC before enabling the setting.

 

To enable Small Employers’ Relief in UK Payroll:

Go to Settings > Policies.

Under Statutory pay claims > enable small employer relief.

 

 

Once enabled, qualifying statutory payment claims will use the Small Employers’ Relief reclaim rate.